Rental Property Investor · Palm Desert, CA · Member since 2019 · 17 posts · 1 vote
I have a primary residence which I will be renting out and buying a second as house hack. What is the best way to report or file rental income taxes in CA? Sole prop with a DBA or simple on my personal. I know I should be contacting a CPA but I figured someone here can shed some light and help reduce my ignorance. Thank you in advance for any advice given.
Property Manager · NJ · Member since 2017 · 786 posts · 396 votes
6y
@Jorge Uribe you may want to consult a real estate CPA as it sounds like you're growing your portfolio, but early on the top tier of Turbo Tax software worked well for me.
Rental Property Investor · New York City · Member since 2014 · 208 posts · 271 votes
6y
@Jorge Uribe without a doubt consult a good CPA. It’s worth it because a mistake could cost hundreds or even thousands. Spend the money for professional advice based on your personal situation.
What difference in taxes are you foreseeing between using a DBA and not using a DBA? Have you incorporated at all? Created an entity of some kind? Obtained a different tax ID number for the DBA? Do you know the difference between Schedule C and Schedule E? If you're not familiar with these items, you may want to consider hiring a CPA.
Also, separate consideration, but you have you created an estate plan yet? With real property ownership in CA, you'll likely want to consider this if you haven't yet (especially it looks like you may have minor children).
*This post does not create an attorney-client or CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.